Feb 4 (Reuters) - Cognizant Technology forecast annual revenue above Wall Street estimates on Wednesday, betting on strong demand for its IT services as businesses adopt artificial intelligence into their workflows.
The company has benefited from enterprise clients prioritizing AI-related digital projects, with sustained demand for its AI and cloud services boosting productivity, cutting costs and supporting growth as generative AI gains traction.
"Our initial 2026 guidance reflects sustained momentum,
backed by our commitment to advancing our strategic investments aimed at accelerating our AI-led growth strategy," CFO Jatin Dalal said.
The company expanded partnerships with companies such as Microsoft and AI-startup Anthropic to attract clients and get ahead of rivals in a highly competitive industry.
Most recently, the company partnered with 3Cloud, expanding its Microsoft Azure services and capabilities in data and AI.
Cognizant expects full-year 2026 revenue between $22.14 billion and $22.66 billion, compared with analysts' average estimate of $22.06 billion, according to data compiled by LSEG.
It also forecast annual adjusted profit between $5.56 to $5.70 per share, the mid-point of which is largely in line with estimates of $5.62.
For the fourth quarter, Cognizant reported a revenue of $5.33 billion, above estimates of $5.31 billion. Adjusted profit came in at $1.35 per share, beating estimates of $1.32.
Cognizant's Health Sciences segment, which has healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech and medical device companies, posted a revenue of $1.62 billion, exceeding estimates.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Shailesh Kuber)
